NEWS & UPDATES

NCIGF Releases Winter Insolvency Trends 2018

National Conference of Insurance Guaranty Funds (NCIGF) has released the winter issue of its biannual Insolvency Trends 2018 white paper.

Authored by the NCIGF legal and public policy staff, Insolvency Trends 2018 provides a complete update on recent developments in insolvency law and practice, and a look at what is on the horizon in the year ahead.

Charles Renn Tapped as NCIGF Board Chairman

Indianapolis, IN, May 9, 2017 – The Board of Directors of the National Conference of Guaranty Funds (NCIGF) has elected Charles F. (Chuck) Renn, Executive Director of the Missouri Property and Casualty Insurance Guaranty Association, as the NCIGF’s new board chairman. Renn assumed the two-year board chairmanship at the NCIGF’s 2017 annual meeting in Minneapolis on May 4. Renn has served on the NCIGF board since 2009. He was the NCIGF board’s vice chair from 2015 to 2017. The NCIGF is a nonprofit, member-funded association that provides national assistance and support to the property and casualty guaranty funds located in each of the 50 states and the District of Columbia. The NCIGF coordinates information for multi-state insolvencies and provides legal, data management, administrative, communications and public policy support to its members across the nation. Renn has served as Executive Director of the Missouri Property and Casualty Insurance Guaranty Association for 16 years. He holds the same position for the Missouri Life and Health Guaranty Association and has held that position for 25 years. Prior to filling the role of Executive Director, Mr. Renn worked for the Missouri Department of Insurance for 14 years, where, among other positions he held, he served as the Director of the Division of Company Regulation for six years. Mr. Renn, a Certified Public Accountant, holds several professional designations, including Fellow, Life Management Institute and Certified Insurance Examiner. He serves on numerous task forces and committees of the NCIGF and the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA). In his address to the NCIGF membership following his election to board chairman, Renn said that a focus during his term would be on ensuring the property and casualty guaranty funds continues to occupy an integral place in the insurance resolution process. “The guaranty fund system is now a critical component of the insurance resolution process,” said Renn. “As Chairman of the NCIGF board, I will strive to do my best to anticipate the impact of changes that could affect our ability to fulfill our purpose. And, where possible, I will be equally diligent in trying to identify opportunities for the organization to solidify our role in the resolution process.” Nick Crews 317-464-8106 317-213-7227 (cell) ncrews@ncigf.org NCIGF President and CEO Roger Schmelzer said Renn’s election to NCIGF board chairmanship will keep the NCIGF focused on its strategic objectives during a critical time in the organization’s development. “Chuck has a clear understanding of and vision for the role the guaranty funds play in the financial services industry and their support of the insurance promise,” said Schmelzer. “NCIGF staff – and the property and casualty guaranty fund community overall – look forward to Chuck’s leadership over the course of his term.”

Guaranty funds helping policyholders

South Carolina Property and Casualty Insurance Guaranty Association Puts a "face" on the claim

When an insurance company goes into liquidation, money, claims and the need to sort out the insolvency take center stage. But the focus of guaranty associations is the fact that behind every claim is a person - often a person in need.

PICTURED: Claims Examiner Becky Muskovin and Claims Supervisor Warren Bullard of the South Carolina Property and Casualty Insurance Guaranty Association are managing Hal's claim. They have been in the claims business for more than 40 years.

Like all guaranty fund claims managers, Bill Morrison of the South Carolina Property and Casualty Insurance Guaranty Association focuses on the "dollars-and-cents" of insolvency administration. After all, it's his job to see that claims are paid. But Morrison's command of the numbers and the intricacies of insurance insolvency law doesn't prevent him from demonstrating the essential life-enhancing benefits his association - and the guaranty funds system overall - brings to the claimants it serves. He calls it "putting a face" on the claim. One such "face" is Hal (not his real name), a 24-year-old man who sustained extensive electrical burns in 2000, a catastrophic on-the-job injury that required amputation of his legs, pelvis and an arm. Hal was covered under a workers' compensation policy written by Legion Insurance Company. When Legion was placed into liquidation in 2003, the South Carolina Property and Casualty Insurance Guaranty Association stepped in to pay its outstanding claims. Since receiving Hal's workers' compensation claim from Legion, the association has seen to it that the guaranty fund system has done more than just cut checks. "We've had a handicapped-equipped house built for him," says Morrison. "This includes lift devices and overhead tracks on the ceiling to move him from one part of the house to the other. We've also provided him with a handicapped-equipped van, and we're paying his sister - his primary care giver - a monthly stipend to provide for his care. This was all deemed to be much better than having him in a nursing home." The guaranty fund also is paying for extensive ongoing medical treatment for Hal, including specially designed wheelchairs and beds and an artificial arm that will cost more than $50,000. "It's a claim that necessitates almost daily contact with some aspect of the case," Morrison says. A co-worker of Hal's who attempted to rescue him was also severely burned in the incident. The South Carolina association is also managing that claim. Morrison says putting a face to claims administered through his office has been a good way to show the community the good work they - and guaranty fund systems ? do. "There are claimants all over the country who are being cared for because of the guaranty system," says Morrison. "The main issue is: if it were not for the guaranty system, this young man would be in an even more difficult situation." So would many others.